From Investing.com: 2025-01-06 01:24:00

Jeremy Grantham remains unfazed by the bear market, attributing the stock market bubble to technology-based financial optimism. Valuations are at an unprecedented extreme, with earnings yield at record lows compared to real bond yields. Wall Street analysts are overly optimistic about long-term earnings growth, fueled by AI hype. Speculative traders are heavily positioned in leveraged bullish funds, a sign of extreme optimism. Stock market breadth has deteriorated significantly, with money flowing mainly into Big Tech stocks. Bank of America reports all-time low market breadth in December, indicating misplaced investor optimism.



Read more at Investing.com: Jeremy Grantham: The Last Bear Standing?